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Buying Foreclosues

Buying a foreclosed property is one of the best ways you can own your own house cheaply. Finding foreclosure home is easy in the current real estate market. Foreclosure listings abound on the internet and in real estate journals.

When you’ve found a foreclosed home that interests you, be sure to thoroughly inspect the property. Determine whether you will need to make any repairs and get an estimate on how much they will cost. If there are repairs are necessary, make sure that they will not cost so much that your dividends are compromised.

Current market conditions make now a great time to purchase one a foreclosure property. While some foreclosed home are located in crime-ridden neighborhoods, foreclosed beachfront homes and properties in affluent areas are also available. Even upscale homes go into foreclosure during recessions.

Foreclosure Auction Shuffle

There are many things to consider when buying a foreclosed home at auction. These considerations include the price, necessary repairs, and the down payment required. You cannot place a bid on a home without a deposit of at least 10% of the sale price.

Home foreclosure auctions sell homes that borrowers were unable to make payments on. In most cases, these homes will be priced at well under the fair market value. Visit the home you’re interested in before bidding to avoid making a poor decision.

Some lenders require the home to start out at a price that will be at least 80% of what the loan was defaulted on. This price may be far lower than the actual market value. If the borrower owed more than the market value on the home mortgage, the home will be priced higher accordingly.

Foreclosure Truths and Misconceptions

With all the buzz and interest, misconceptions about foreclosure properties abound. Many buyers believe all foreclosure properties need major gutting and repairs, which is not the case. “Foreclosure” is now the top keyword word search on most real estate websites and search engines, which reflects the foreclosures’ popularity in the marketplace.

Because many builders got caught by the real estate downturn and were unable to sell, new homes are now available from the foreclosing lenders at low prices. When the market plummeted, lots of real estate developers where left with they could not lease. Some beautiful homes and condo’s that cost in the seven figures before the downturn are now being sold for 40 to 75% less by foreclosing lenders.

When the housing bubble burst, it forced many lovely properties into foreclosure. Many of these properties need little more than some yard work and a fresh coat of paint. Contrary to popular opinion, not all foreclosed homes for sale require extensive repairs.

REO’s: Consider This!

For investors and homebuyers looking to purchase a Real Estate Owned (REO), there has never been a better time than now. Without the proper preparation, buying a foreclosure can be risky. Make a smart investment by doing your homework first.

Contact the city for current tax and assessment information, and check for unpaid utilities, water and sewer bills. Search the title and public records to ensure there are no leins or assessments against the property. Get a professionally property inspection, as not all damage done to the house is visible.

You can’t expect to turn around a profit right away. Investors who do as little as possible to a house, hoping to resell for a profit when the market turns around, may find tiny profits and huge hassles. Some cities penalize neglectful property owners, charging penalties that increase over time.

The How and Why of Finding Foreclosures

There are many reasons why it is good to consider buying foreclosed homes. Whereas new homes can be very expensive, you can obtain a 15% to 50% discount on foreclosed properties. There are many foreclosure properties on the market today so you’re likely to find out that suits you.

Partnering with a real estate agent can help you expedite the foreclosure purchasing process. Many realtors who are quickly informed of foreclosed homes for sale. Always have patience when searching through listings, as it might take considerable time and effort to find a good catch.

A quick way to find foreclosed properties is to look in neighborhoods where high foreclosure rates exist. May websites also provide foreclosure property leads online. Newspapers are another good source to find houses in foreclosure, as laws require all states to place a public notice auction for foreclosure properties.